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Carmen Reinhart points out that the government can only assume private debt at a realistic price. Without principal reductions there appears to be no solution to the problem of the fifth of homeowners in the US who are under water. This keeps acting as a drag on the economy.
Grouped Articles
BusinessWeek 09/30/2010
State Attorneys General Take Helm in Mortgage Mess
New York Times 10/29/2010
To Fix the Housing Crisis, Read the Data
New York Times 11/04/2011
Deepening Crisis Over Euro Pits Leader Against Leader
Wall Street Journal 12/30/2011
Forgiveness of Debt Could Yield Savings
Wall Street Journal 07/30/2012
Structural problems like a mismatch of skills between maufacturing and construction sectors worst hit since 2008 and growing sectors like healthcare is one problem. Geographic factors and difficulty selling homes in states like Michigan is another. The tighter credit from a return of banking sector losses from bad home equity loans that is expected in late 2010 will keep the recovery from taking hold keeping unemployment high. The economic uncertainty following repeated budget battles between political parties also affects business investment.
Grouped Articles
90 Million Americans Not Working
Wall Street Journal 10/23/2013
Hiring Slowdown Blurs Growth View
Wall Street Journal 01/20/2014
Confronting Old Problem May Require a New Deal
New York Times 01/28/2014
More Men in Prime Working Ages Don't Have Jobs
Wall Street Journal 02/06/2014
New York Times 04/05/2012
Hiring Is Strong and Jobless Rate Declines to 6.1%
New York Times 07/03/2014
Lawsuits by states against U.S. banks on behalf of homeowners with mortgages and others who suffered losses.
Grouped Articles
Vote Ushers In New Era in Oversight of Lending Practices
New York Times 07/16/13
J.P. Morgan Reaches $4.5 Billion Settlement With Investors
Wall Street Journal 11/17/13
Ohio Attorney General Takes Strong Stand on Crisis
New York Times 10/11/10
State Attorneys General Take Helm in Mortgage Mess
New York Times 10/29/10
How the Banks Put the Economy Underwater
New York Times 10/30/10
Bank Challenger Picked to Run Consumer Agency
Wall Street Journal 07/18/11
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